The decision by oil producers' group Opec on Thursday to maintain current output levels sent the price of oil down sharply. Brent crude was trading at $72.49 a barrel on Friday having fallen by more than $5 on Thursday.

Investors were also digesting a large amount of economic data from Japan, which painted a mixed picture of the world's third-largest economy.

Excluding the effect of a large tax rise in April, the inflation rate in October was 0.9%, way below the 2% target.

Including the tax rise, core inflation was 2.9% higher in October than a year ago, compared with 3% in September.

Household spending fell by 4% in the year to October, but retail sales rose 1.4%, beating expectations and the unemployment rate fell from 3.6% to 3.5%.

Japan's industrial output rose by more than expected, climbing 0.2% in October from the previous month - the second consecutive month of gains.

Hong Kong's benchmark Hang Seng index closed down 16.83 points at 23,987.45, while in China the Shanghai Composite ended up 52.35 points, or 2%, at 2,682.83.

In Australia, the benchmark S&P/ASX 200 index closed down 1.6% at 5,313, its biggest percentage drop in seven weeks.

Shares in the resources sector were weighed down by the slump in oil prices following the Opec meeting.